[Smiles]

Lockerbie Settlement May Be Near
Libya Appears Likely to Take Responsibility, Sources Say
By Peter Slevin
Washington Post Staff Writer
Wednesday, August 6, 2003; Page A13


Aiming to burnish its reputation, the government of Libyan leader Moammar Gaddafi appears close to taking responsibility for the terrorist bombing of Pan Am Flight 103 and depositing $2.7 billion in an account for relatives of the 270 victims, sources said yesterday.



Lawyers and diplomats hope to sign documents next week establishing an escrow account at the Bank of International Settlements in Switzerland. If all goes according to plan, Libya would notify the United Nations Security Council on Aug. 14 that it bears responsibility for the deadly bomb planted in 1988 by a Libyan agent, said sources familiar with the negotiations.

Gaddafi, anxious to improve ties with the U.S. government and end sanctions that prevent American companies from investing in oil-rich Libya, has said in a series of recent television interviews that the Pan Am case is nearly resolved. His son Saif Islam Gaddafi told a British television reporter July 25 that "the question regarding responsibility is actually over."

If the Libyans make good on their promises after two years of intermittent talks, the U.N. Security Council would formally lift economic sanctions and a debate would begin in Washington about how much to trust Gaddafi. Once called an "evil man" by President Ronald Reagan, Gaddafi is now seeking Libya's removal from the State Department's list of terror-sponsoring states.

An agreement would "pave the way for a dialogue" between the two countries, said a U.S. official who emphasized that the United States should continue to question Libya's interest in weapons of mass destruction and support for militant regimes.

"The answers to those questions will help determine how quickly the issues in our bilateral relationship will be resolved," said the official, who added that an evaluation of Gaddafi by a skeptical administration and Congress will take time. "Rather than a rapid swinging open of the door, it is a significant first step toward Libya addressing the concerns of the United States."

Whatever happens with long-standing U.S. sanctions, a Libyan admission of responsibility and a deposit of $10 million for the families of each of the people who died on the U.S.-bound flight over Lockerbie, Scotland, would be a remarkable departure for the Gaddafi government .

For years, Libya denied any role in the bombing, in which a Boeing 747 jetliner with 259 passengers and crew members exploded high above the rugged Scottish landscape. Eleven people on the ground also died. Investigators from the United States and Scotland Yard eventually traced a piece of fabric and a sliver of a radio, leading them to two Libyan agents later indicted for the crime.

Gaddafi surrendered the agents for trial by a Scottish court in the Netherlands, which found Abdel Basset Ali Megrahi guilty in February 2001. His compatriot went free. Four months later, Libyan representatives notified lawyers for Pan Am 103 victims that they would listen to a settlement request.

Last year, U.S. lawyers and Libyan negotiators reached an agreement that would pay $10 million to each victim's family in response to steps releasing Libya from international sanctions. The first $4 million would be delivered when U.N. sanctions -- suspended when Gaddafi surrendered the suspects -- have been formally lifted.

Another $4 million would be paid to each family if the U.S. government lifts separate sanctions, with the final $2 million coming if Libya were removed from the State Department terror list. Libya would deposit $2.7 billion in advance in the Swiss bank, if plans proceed according to the negotiated deal.

Relatives of the dead say they are seeking justice as much as money. To many, the wording of Libya's statement of responsibility is at least as important as the cash distributions. A hope that Gaddafi himself would accept blame for the bombing plot appears certain to be dashed, officials said.

Rather, the Libyan government is expected to say that it bears responsibility as the employer of Megrahi. Saif Islam Gaddafi on July 21 told CNN that "we regard ourselves innocent and we had nothing to do with that tragedy." But he said Libya has a commitment "to accept the outcome of the trial."

Dan Cohen, whose only daughter died aboard Pan Am 103, said he and his wife Susan will accept their share of the money if Libya takes responsibility. They believe the lifting of U.N. sanctions is a formality, but they intend to fight against eliminating U.S. sanctions.

"We're not happy with the idea that one of these days we're going to be sending tourists to sit at the feet of Gaddafi," Cohen said yesterday. "The United States should have nothing to do with this country so long as that regime exists. Period."

Within Congress and the administration, strong doubt about Gaddafi's record and his intentions exists alongside hopes that Libya can become the first nation to escape the terror list and reopen to U.S. business. Undersecretary of State John R. Bolton has said he considers Libya a "rogue state" seeking to reestablish its ability to produce and deliver chemical armaments as well as acquire nuclear weapons.

Members of the Bush administration will save that argument for the domestic debate and do not expect to challenge the lifting of U.N. sanctions if Libya accepts responsibility, officials said.

"The question is whether the formula is going to be acceptable to all at the top," said a Security Council diplomat. "I think were moving quite close to that, though no one will be quite sure until it happens."

Staff writer Colum Lynch at the United Nations contributed to this report.


© 2003 The Washington Post Company